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Current Futures: Dow -29.00, S&P -3.10, NASDAQ -2.75
Asian markets are advancing after a report showed that confidence among the U.S. consumers improved in May. The major indexes in the U.S. rose the most in a week after the news was released, but for now, U.S. futures are again trading into the red.
A report showed on Tuesday that consumer confidence reached the highest level in the past eight months in May, something that provided strong support to the global financial markets. Moreover, in April and May consumer confidence rose the most on record as consumers are turning positive about future expectations. As such, consumer’s expectations over the next six months reached 72.3, the most since December 2007, while the present condition index rose to only 28.9. However, just a few months back, in February, the consumer confidence index reached an all time low of 25.3 points.
TheLFB-Forex.com Trade Team notes that consumers seem to be on the right path for now. The report had a strong influence in the financial markets since consumers make up 70% of the U.S. economy, and consumers need to be optimistic in order to spend and sustain the economic recovery. In the first quarter, consumer spending helped the GDP numbers gain some ground, but still it was too small to offset the declines seen in inventories. The combination of sustained consumer spending together with low inventories may help the U.S. economy recover faster than expected, maybe even from the second of the third quarter TheLFB-Forex.com Trade Team commented.
Overnight, the Japanese Nikkei rose 135.96 points (1.46%) to 9,446.77. The Australian S&P/Asx rose 39.90 points (1.05%) to 3,828.30.
Crude oil for June delivery was recently trading at $62.60 per barrel, higher by $0.20.
Gold for June delivery was recently trading lower by $2.50 to $952.60.
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